PRTR Trends in the Automotive Industry Using PRTR data to measure & assess progress November 11, 2014

Abt Associates | pg 2 Overview  PRTR data can be used to track industry-level trends in toxic releases and industry progress in pollution prevention  In this presentation, we use PRTR data to: –Track trends in releases by the automotive sector –Investigate the drivers changes in releases –Look at the impact of pollution prevention on the sector’s releases  Automotive Industry as defined in this analysis: –Motor Vehicle Manufacturing (NAICS 3361) –Motor Vehicle Body and Trailer Manufacturing (NAICS 3362) –Motor Vehicle Parts Manufacturing (NAICS 3363)

Abt Associates | pg 3 Release Trends for Automotive

Abt Associates | pg 4 Release Trends by Country

Abt Associates | pg 5 What is driving the decrease in releases?  Is it due to pollution prevention or other factors? –Economy? –A shift from releases to other waste management methods (e.g., treating the waste)? –Reductions from a few facilities that are driving the sector-wide trend? –Outsourcing?

Abt Associates | pg 6 U.S. Automotive TRI releases have declined significantly

Abt Associates | pg 7 How does the trend compare to trends in other sectors?

Abt Associates | pg 8 Are reductions due to economic trends? Releases includes onsite and offsite disposal or other releases.

Abt Associates | pg 9 Did wastes shift from releases to other waste management?

Abt Associates | pg 10 Are reductions sector-wide or driven by a few facilities? *Based on cumulative releases

Abt Associates | pg 11 Are reductions sector-wide or driven by a few facilities?

Abt Associates | pg 12 Which subsector was driving the decreases?

Abt Associates | pg 13 Are reductions a result of outsourcing?  Is an increase in outsourcing driving the reductions?  Data sources quantifying outsourcing were not identified  As a proxy, examine facilities that reported over the whole 10-year period ( → facility still operating in U.S.) –Examine the chemicals at those facilities that were reported over the 10-year period ( → process still operating in U.S.)

Abt Associates | pg 14 Are reductions a result of outsourcing?

Abt Associates | pg 15 What is driving the decrease in TRI releases?  Is it due to pollution prevention or other factors? –Economy? production was a driver, but not in recent years –A shift from releases to other waste management methods (e.g., treating the waste)? Some shift to increased recycling –Reductions from a few facilities that are driving the sector- wide trend? No –Outsourcing? Some influence but limited information available

Abt Associates | pg 16 What chemicals were reduced?

Abt Associates | pg 17 What source reduction activities were reported?

Abt Associates | pg 18 Examples of additional P2 information reported to TRI  A switch from solvent based coatings to water based coatings has resulted in reduced use of solvents reported.  Reducing copper formulas for brake pads, which will reduce the brass in some blocks, which will reduce the brass we use, thus reducing copper, lead, and zinc.  Switched to better quality lead anode fixtures which increased the life expectancy of the anodes resulting in a 40% reduction in lead waste during  Our recycling company has helped us in obtaining and developing the latest technologies and processes to recycle as much material as we can.  P2 Search Tool:

Abt Associates | pg 19 P2 progress using a statistical approach  Methodology: “Differences-in-differences” approach (common in economics literature) –Estimates how toxic releases at each facility-chemical changed in the year before and after implementing a source reduction project –Controls for other facility- and industry-level factors (e.g., changes in production, economic conditions, pollution regulations)  Main findings: –The average source reduction project results in a 9 – 16% decrease in facility-level TRI releases (of targeted chemicals). –Between 1991 and 2012, source reduction may have reduced cumulative U.S. TRI releases by as much as 13 billion pounds.

Abt Associates | pg 20 Results for the automotive sector: impact on facility-level releases Comparing within a facility across chemicals Comparing within the sector for the same chemical Source reduction reduced releases of targeted chemicals by 26% Source reduction reduced releases of targeted chemicals by 12%

Abt Associates | pg 21 Results for the automotive sector: impact on sector-level releases Cumulative difference is million lb avoided through source reduction activities

Abt Associates | pg 22 Wrap up  Automotive sector TRI releases continue to decline, even as production has increased since 2009  Has pollution prevention been a driver of the reduced releases? –Our analyses indicate that the implementation pollution prevention activities by the automotive industry has contributed to reduced releases –The results more broadly suggest a potential for the use of PRTR data as a tool to track pollution prevention progress